Which of the Following Statements About the Importance of Trade

question 53

Multiple Choice

Which of the following statements about the importance of trade to the U.S.economy is true?

• A)Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.
• B)Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.
• C)The United States is the second largest exporter in the world.
• D)The U.S. economy is highly dependent on international trade for growth in its gross domestic product.

---

Definitions:

Control

The power to direct the financial and operating policies of a business with a view to gain economic benefits from its activities.

Accounting for Business Combinations

The process of accounting for the acquisition of one company by another and combining the financial statements.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group involving a parent and its subsidiaries, recognizing and measuring the assets acquired and liabilities assumed at their fair value on the acquisition date.

Purchase Method

An accounting method used in mergers and acquisitions where the purchasing company records the assets and liabilities of the acquired company at fair market value.